The eurozone's economic outlook is bright, with expansion increasingly fuelled by domestic demand, and inflation appears to be under control, the European Commission said on Tuesday. "Good times are here for the euro area ... It also looks like good times are here to stay for some time," the EU executive said in its quarterly report on the economy of the 13 nations using the euro.
The Commission, reiterating that the eurozone's economic growth should reach 2.6 percent this year after 2.7 percent in 2006, said expansion would be increasingly fuelled by domestic demand and investment rather than exports.
It said risks for growth were balanced, as domestic demand might surprise on the upside, but a slowdown in the United States could still weigh on the euro area. The view was backed by data which showed on Tuesday that the eurozone's unemployment rate fell to a new record low of 7.0 percent in May from 7.1 percent in April.
Comments
Comments are closed.